Bank's interest rates on single Digit by Prime Minister Prachanda directive

Mar Sun 2023 06:10:11

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Bank's interest rates on single Digit by Prime Minister Prachanda directive

Kathmandu. Prime Minister Pushpa Kamal Dahal "Prachanda" has said that the information about missing contractors presents the true picture of the construction sector. He said this on Sunday while addressing the 24th General Assembly of Nepal Construction Professionals Association.

In addition, he also informed that he has discussed with Nepal Rastra Bank and related officials and given the necessary instructions on how to limit such interest rate to a single point when the interest rate of the bank is increasing due to tight monetary policy.

He said, 'The country's economy is still not in an easy state. However, there is no need to panic. Last year, when our foreign exchange reserves decreased, there was a situation where the country would fall into an economic crisis, and the independence and existence of the entire country would be in danger. But due to the policies taken by the government at that time to balance the external sector, the possibility of such a crisis has been avoided.'

While some countries in our neighborhood are in a difficult situation due to the dwindling reserves of foreign currency, we have more than 10 months worth of goods and services. This shows that our economy is gradually moving from crisis to improvement.

A tight monetary policy was necessary in the past to balance the external sector. But now that crisis is over. Now the attention of the government is on how to make the economic activities sustainable, how to improve the indicators of the economy. The government's priority is to accelerate capital expenditure by reducing unnecessary current expenditure. The government's attention has shifted towards the direction of increasing the expenditure of the Ministry of Physical Infrastructure, which has the largest capital budget, and paying the remaining payments of the builders on time.